Glatfelter P H Company (GLT) has reported 45.15 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $19.60 million, or $0.44 a share in the quarter, compared with $13.50 million, or $0.31 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $23.98 million, or $0.54 a share compared with $20.81 million or $0.47 a share, a year ago.
Revenue during the quarter dropped 3.44 percent to $406.65 million from $421.11 million in the previous year period. Gross margin for the quarter expanded 82 basis points over the previous year period to 15.04 percent. Total expenses were 93.75 percent of quarterly revenues, down from 95.19 percent for the same period last year. This has led to an improvement of 144 basis points in operating margin to 6.25 percent.
Operating income for the quarter was $25.42 million, compared with $20.24 million in the previous year period.
"Our third quarter results reflect the continuation of challenging conditions in several of our markets," said Dante C. Parrini, chairman and chief executive officer. "While Specialty Papers continued to improve its operating performance driving a 7% increase in operating profit, a soft demand environment in the broader uncoated freesheet market impacted shipping volume and limited the realization of price increases announced earlier this year. In Composite Fibers, shipping volumes fell short of our expectations as demand for wall cover products was softer than expected. The weakness in these businesses outweighed the steady performance of our Advanced Airlaid Materials business. Demand in our airlaid markets remains robust and our wipes volume was up significantly on both a year-over-year and sequential-quarter basis."
Outlook
Composite Fibers’ shipping volumes in the fourth quarter of 2016 are expected be approximately 5% lower than the third quarter driven by lower sales of metalized products. Selling prices and raw material and energy prices are expected to be in-line with the third quarter. The Company anticipates the impact of machine downtime to reduce inventory levels will be largely offset by cost reduction initiatives.
Operating cash flow declinesGlatfelter P H Company has generated cash of $59.44 million from operating activities during the nine month period, down 15.72 percent or $11.09 million, when compared with the last year period. The company has spent $117.29 million cash to meet investing activities during the nine month period as against cash outgo of $72.92 million in the last year period.
Cash flow from financing activities was $2.97 million for the nine month period as against cash outgo of $21.95 million in the last year period.
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